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The owners of the Centre at New Hope purchased the property at the end of 2002. Adjusted NOI for 2003 was projected at $4 million

The owners of the Centre at New Hope purchased the property at the end of 2002. Adjusted NOI for 2003 was projected at $4 million and expected to rise at 5 percent per annum over a seven-year hold period. The property was purchased at a 9 percent cap rate based on 2003 adjusted NOI. The owners expect that they will be able to sell it at the end of the holding period at an 8 percent cap rate. Can the owners achieve a 10 percent return? (Assume the owners are tax exempt.)

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